IGrow’s Home Loans Director, Madelien Kottnitz, sheds some light on the essentials of joint property investment and joint home loans in South Africa, covering different relationship statuses. Her insights are valuable for both your investment and your relationship!
Written by Madelien Kottnitz
Director: IGrow Home Loans
Did you know?
In South Africa, approximately 80% of bond applicants are under the age of 35, and they apply with a partner. Joint home loan applicants gain an average of 30% more financing than they would qualify for alone!
“The great marriages are partnerships. It can’t be a great marriage without being a partnership.”– Dame Helen Mirren
The benefits of joint home loan applications
Applying for a joint home loan offers significant advantages, including increased buying power and shared responsibilities. However, the legal framework varies dramatically based on your relationship status in South Africa. Making sure you understand these differences before signing a bond application can save you significant stress and potential financial complications.
Jacques Fouché, IGrow’s CEO and Founder, gives some great perspective on joint property investments: “In my years at IGrow, I’ve seen countless couples—married, unmarried, or somewhere in between—navigate the complexities of joint property ownership. When done right, couples build impressive wealth together. When done without proper planning, even the strongest relationships can face unnecessary strain.”
Joint home loan: how it works
Unmarried partners: What are the legal implications for joint home loans in South Africa?
For unmarried couples in South Africa, there is no automatic legal framework governing joint property ownership. This causes flexibility as well as potential risk.
Legal Requirements:
- Each of the partners must individually qualify for credit under the National Credit Act
- Banks usually need both applicants to sign as co-borrowers with both joint and individual liability
- Each co-applicant requires separate FICA documentation
- The Deeds Office will register ownership according to specified percentages
It’s important to take these best practices into account:
Draw up a comprehensive co-ownership agreement via a property attorney that covers:
- Financial contribution percentages (initial and ongoing)
- Decision-making processes regarding property matters
- Exit strategies in case the relationship ends
- Property maintenance responsibilities and cost-sharing regarding this
It is important to:
- Take note of ownership percentages on the title deed (it doesn’t have to be a 50/50 split)
- Take out life insurance policies with your partner as a beneficiary to cover the bond
- Consider creating a trust to hold the property for additional protection
- Open a dedicated joint account specifically for property expenses
Top legal tip: South African courts currently recognise universal partnerships in certain circumstances, but having a formal agreement in place offers much stronger protection.
Married in community of property: What is your joint home loan application-related liability?
For couples married in community of property (with no antenuptial contract), both spouses automatically share equal ownership of and responsibility for all assets and all liabilities.
The legal framework to consider:
- Both spouses automatically become co-owners of the property (with a 50/50 split)
- Both partners are fully liable for the entire bond amount (joint and several liability)
- Both partners must consent to all property transactions
- The property forms part of the joint estate if one partner dies
Best Practices to take into account:
- Do a credit check for both of you before applying for financing
- Ensure you attend all bond application meetings together
- Consider getting additional insurance coverage beyond the bank’s requirements
- Ensure both partners have access to all your property documentation
- Draw up a joint Will including the property
Legal Note: Section 15(2) of the Matrimonial Property Act requires written consent from both spouses for any property transaction. This includes refinancing or taking additional loans against the property.
Married with an Antenuptial Contract and the implications for defined separation regarding joint home loans in the South African context
Antenuptial contracts (ANCs) in South Africa create a clear separation of assets and require careful understanding of the contract for joint property investments.
Legal Considerations:
- The property can be owned in defined shares (this is explicitly stated in the title deed)
- Each spouse’s assets remain protected from the other spouse’s creditors
- Both partners must consent to the bond application
- The bond can be structured to reflect different contribution percentages.
ANC Variations:
- ANC without accrual: There is complete separation of assets with no sharing
- ANC with accrual: Growth in assets during the marriage are shared if you divorce.
Best practices to take into account:
- Make sure your ANC specifically addresses property investments
- Keep proper documentation of all financial contributions clearly
- Consider drawing up a separate written agreement specific to the property
- Update your ANC as needed as your investment portfolio grows
- Keep separate financial records related to property contributions
How IGrow Home Loans assists South African couples applying for joint home loans
“Our specialised team helps couples navigate these complex waters. Joint property investment offers tremendous advantages for South African couples, but the foundation must be built on the proper legal structure for your specific relationship status. By understanding these requirements from the outset, you can create wealth together more effectively.” – Madelien Kottnitz, Director of IGrow Home Loans
IGrow Private Wealth Financial planners assist with insurance and financial plans
IGrow Private Wealth, a new company partnering with IGrow Wealth, is fully integrated with the rest of the IGrow team and IGrow companies. This company offers guidance from Financial Planners who are experts in financial planning and retirement planning advice. Our Financial Planners can also help you set up any of your insurance needs at IGrow when purchasing a property. Your insurance requirements need to be met when taking out a joint home loan, and IGrow Private Wealth will advise you on your needs.
Prime investment properties for sale at IGrow Wealth Investments
IGrow has a selection of great properties we can help you secure a favourable bond for, making your property investment journey seamless. We also have some wonderful recent launches at IGrow.
Johannesburg properties for sale
The View (a recent launch) in Morningside, Sandton, Johannesburg, is ideal for the modern professional, a few minutes away from Sandton centre. The security complex has stunning gardens, leafy balconies and well-designed interiors. The Studio and 1-bedroom apartments on offer, priced from R1,110,540 – R1,599,000, have off-grid capability with water and an electricity backup generator.
The Aura (a recent launch) in Northgate, Randburg, has affordable high-demand units at R799,000 in a wonderful security estate. The complex has a lot to offer with its environmentally-conscious indigenous gardens, a scenic pond, fun pools, a trendy clubhouse, and a gym on the premises.
Brooke Manor (a recent launch) found in Rivonia, Sandton, is ideal for working professionals, only 10 minutes away from Sandton Centre. It’s also perfect for young families with excellent schools and a host of exciting recreational activities in the area. Units are priced from R1,199,000.
Pretoria properties for sale
Woodlands Lane, in Pretoria East, is near the necessary amenities for tenants. It’s close to business hubs, recreational and shopping options and a variety of good schools. It is near Pretoria University, which suits student tenants. Units are available from R1,049,000.
33@View in Irene, Pretoria, has stunning 2 and 3-bedroom homes in a secuirty complex priced from R159,5000, with occupation at the end of 2025. You are able to design your ideal home by choosing from a variety of optional additions to the homes, according to your preferences. This unique approach allows you to add your personal touch, which will be in-built into your home.
These properties suit families and students alike, with excellent schools and tertiary institutions nearby, such as Rietvlei Akademie and Cornwall Hill College, as well as the University of Pretoria. There is a communal park with a children’s playground and an outdoor gym on the premises, too.
Cape Town properties for sale
Sunset Village West (a recent launch) in Scottsdene, Kraaifontein, Cape Town, is well-situated, near work and education opportunities. The units are priced from R614,000. Sunset Village is a highly affordable option for investors and offers incredible Section 13 sex income tax deduction opportunities for property portfolio holders of 5 + eligible residential units. (View our recent blog post that explains the benefits of section 13 Sex Tax Act deductions: How to Build a Profitable Buy-to-let Property Portfolio).
There are also netted Astroturf soccer/basketball multisport courts and timber kids’ jungle gyms & swing sets on the property for children to enjoy. Wonderful communal gardens and a braai area for residents, are on the premises. There are water tanks in the security complex to lower maintenance costs.
The Kingsley (a recent launch) in Mowbray, in the Southern Suburbs of Cape Town, has luxury designer units for R1,199,000. They are ideal for student accommodation, with UCT a short walking distance away and perfect for young professionals with businesses in the area, such as the new Amazon CT headquarters. Property in this area is rather scarce and in high demand by tenants looking for convenience.
Contact our Home Loans team today to explore how your relationship status can become a strategic advantage in your property investment journey.
